$145M Loan Earmarked For Chicago Apartments
- Nov 08, 2016
By Keith Loria
Chicago—A joint venture between JDL Development and iStar Inc., has received $145 million in structured debt for the recapitalization and stabilization of 1000 South Clark, a 469-unit luxury apartment building in Chicago’s South Loop.
Mesa West Capital originated the five-year, non-recourse financing, which included $30 million in mezzanine debt that was sold to an institutional investor at closing.
“We felt that this was the best new construction building within the submarket,” Matthew Snyder, Mesa West’s vice president, told MHN. “It has a superior amenity package and we felt it catered to a wide renter base.”
The building includes a mix of open-concept studio, one-, two- and three-bedroom and townhome units. Amenities include a 10,000-square-foot fitness facility, 24-hour concierge, tenant lounge and game room, private library and wine bar, indoor/outdoor pool, and a skydeck on its 29th floor, complete with running track and dog run.
1000 South Clark was completed in February and is currently in the final stages of lease-up, with approximately 80 percent of units already gone.
“The South Loop submarket is one that you’re going to see a lot of new supply, with a few large projects coming on line over the next few years,” Snyder said. “We think this project is positioned as one of the best ones that’s been delivered and the lease-up speaks to that.”
JDL has developed more than 2,000 high-end condominiums and luxury high-rise apartments throughout Downtown Chicago.
According to Snyder, JDL positioned this building for the millennial renter demographic as well as for families who want to take advantage of the building’s superior amenities as well as the shopping, recreation and entertainment options in the South Loop.
“Demand has been able to keep up with the increasing supply of multifamily assets in downtown Chicago as companies with suburban headquarters such as Kraft Heinz, Google and McDonalds return to the CBD to draw on skilled younger workers who prefer to live and work in the city,” he said. “As result of the first class amenities and high end apartment finishes, leasing velocity at 1000 South Clark has outperformed competitive buildings in the area.”